Google's Q1: Search Holds Steady While Network Revenues Slip

AdSense suffers a year-over-year revenue decline, but the company's core product continues to grow.

Google’s ad network business was roughed up by the recession last quarter, but search advertising is holding steady.

Reporting its Q1 earnings today, Google said ad revenues generated by its AdSense network of Web site partners totaled $1.64 billion, a 3 percent drop compared to the year-ago period. AdSense also represents a smaller chunk of the company’s business — 30 percent for the quarter just ended compared to 33 percent in Q1 2008.

Meanwhile ad performance held up on Google.com and the company’s other in-house properties. Google site revenues were $3.7 billion, representing a 9 percent annual growth rate.

Notably, Google experienced its first sequential revenue declines during Q1. It reported total revenues of $5.5 billion for the quarter, representing a quarter-to-quarter loss of 3 percent. The annual growth rate was 6 percent.

“These results underline both the resilience of our business model and the ongoing potential of the Web as users and advertisers shift online,” said CEO Eric Schmidt in a statement.

Google reported earnings per share of $4.51 on net income of $1.4 billion. The company’s headcount at the end of the first quarter was 20,164, down slightly from 20,222 at the end of Q4 owing to natural attrition and the company’s first-ever layoffs.

Additionally, the company announced its global sales chief, Omid Kordestani, will take on a new role as senior advisor to Eric Schmidt and Google’s founders. He’ll be replaced by Nikesh Arora, currently President of International Operations. Arora’s new title is president of global sales operations and business development.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource